Student Loan Payoff Accelerator (UK)

Most UK graduates will never pay off their student loan. That's not a failure — it's how the system works.

UK student loans aren't like normal debt. They're written off after 30 or 40 years. Repayments are 9% of income above the threshold. Whether you should overpay depends entirely on whether you'll clear the balance before the write-off date — and most people won't. This planner shows you your specific situation so you can make the right call.

What's Included

• Plan type selector: Plan 1 (pre-2012), Plan 2 (2012–2023), Plan 5 (post-2023), Postgraduate Loan — each with correct thresholds, rates, and write-off periods
• Income projection model: enter your current salary and expected annual growth rate — the sheet projects your repayments year by year until the write-off date
• Will you clear it? calculator: the key question answered clearly — based on your income trajectory, will you repay in full or will it be written off? Shows the crossover salary where overpayment starts to make sense
• Overpayment analysis: if you're in the minority who will clear the balance, see exactly how much voluntary overpayments save in interest — and if you won't clear it, see why overpaying is literally giving away money
• RPI + 3% interest modelling: shows how your balance grows faster than you repay in early career years (the moment that terrifies most graduates — explained clearly)
• Threshold freeze impact: models the effect of the government freezing repayment thresholds — shows how much extra you'll repay vs the original plan
• Multiple loan tracker: if you have Plan 2 + Postgraduate Loan, see combined monthly deductions and separate projected outcomes
• Year-by-year amortisation table: balance, interest added, amount repaid, remaining — for every year until write-off
• Works in Google Sheets (free) and Excel

Who This Is For

• UK graduates on Plan 2 or Plan 5 who want to understand whether they'll ever actually clear their loan
• Anyone whose balance keeps growing despite making repayments and wants to understand why that's normal
• High earners considering voluntary overpayments who need to know if it's financially rational for them specifically
• Graduates with both an undergraduate and postgraduate loan who want to see the combined picture

How It Works

1. Select your plan type (Plan 1, 2, 5, or Postgraduate) and enter your current balance
2. Enter your current salary and expected annual pay growth (e.g. 3–5%)
3. The sheet projects every year of repayments — income, 9% deduction, interest added, and remaining balance
4. Check the "Will you clear it?" summary: green = yes, overpayments could save money. Amber = borderline. Red = no, your loan will be written off — overpaying would cost you money.
5. If you're a high earner in the green zone, use the overpayment tab to find the optimal monthly amount